Investments

Even a relatively minor jump in prices can take a major bite out of the income from the conservative yields of U.S. Treasury bonds, the foundation of so many investor portfolios. But the income and long-term return from one type of Treasury, called Treasury inflation-protected securities, or TIPS, actually improves as the consumer price index rises.

Last year, when the federal government poured money into the economy and inflation fears swirled, TIPS became a focus for investors looking for a hedge against rising consumer prices. As a result, yields on these securities were driven down to low levels — and particularly as worries about inflation subsided, TIPS began to appear less attractive.

Read More  

Most of the news about dividend-paying stocks during the first half of the year focused on the oil spill in the Gulf of Mexico. When BP suspended its dividend to brace itself for the costs and responsibility associated with one of the worst environmental disasters in U.S. history, investors were reminded again of the importance of maintaining a diversified investment strategy.

Behind the headlines, though, a more upbeat dividend-paying story has quietly been unfolding — this group of stocks as a whole has emerged as something of a hedge against recent market volatility.

Read More